Meta is preparing to raise the prices of its virtual reality devices as the company shifts its business model to ensure long-term sustainability, according to an internal memo shared with employees. Metaverse executives Gabriel Aul and Ryan Cairns told staff that Meta must adjust to rising costs, including tariffs, while positioning its devices as more premium products.
The memo, circulated on December 4, said Meta will extend the replacement cycle of its in-market devices and rely less on rapid hardware refreshes. Executives argued that the new pricing strategy will help stabilise the business and reduce pressure for any single device to succeed.
They also highlighted a renewed emphasis on delivering high-quality software experiences to match the capabilities of Meta’s hardware, even if that means releasing new devices at a slower pace.
The Meta Quest 3 currently retails for US$499.99, while the company’s entry-level model is priced at US$299.99. The price shift comes as Meta delays the launch of its mixed-reality glasses, codenamed “Phoenix”, from late 2026 to early 2027.
Though the memo did not specifically mention the mixed-reality glasses, it followed a broader strategy meeting with CEO Mark Zuckerberg and CTO Andrew Bosworth focused on building a sustainable VR business, improving software quality, and accelerating progress on mobile.
The update arrives amid reports that Meta plans to cut Reality Labs’ budget by up to 30%. Despite the financial strain, including more than US$60 billion in losses since the metaverse pivot, executives insisted the company remains committed to virtual reality for the long term.
